Experience Counts® was engaged to review a business valuation report  in a family law matter. The single expert report concluded that the business had nil value because the business depended on the principal personally and would “therefore have a nominal value to an independent third party purchaser”.

Experience Counts®, in its review of this report, was able to establish that a public company was purchasing businesses of this type, with transition arrangements for vendor principals often  included. Such transitional arrangements are considered normal, commercial arrangements in the sale of a business.

Experience Counts® was then engaged to produce a “shadow” valuation report utilizing the information gleaned in respect of the sale of such businesses. It was  concluded that the business was worth a significant sum which enabled a much more satisfactory outcome in family law property negotiations for the spouse of the principal.